Industrial Exports Soared To Reach 83.73 Billion US Dollars, Trade Balance Surplus Trend Continued For 25 Consecutive Months

Minister of Industry Agus Gumiwang. (Photo: Doc. Ministry of Industry)

JAKARTA - The export performance of the processing industry from January-May 2022 reached US$83.73 billion or grew by 25 percent compared to the same period last year of US$66.99 billion. The shipping value of the industrial sector gave the highest contribution, penetrating 72.83 percent of the total national export value for the past five months, which touched US$114.97 billion.

Referring to data from the Central Statistics Agency (BPS), the increase in the number of exports was in line with the export performance of the manufacturing industry in May 2022. In this period, exports of the processing industry reached US$14.14 billion, up 7.78 percent compared to the same month last year, amounting to US$13.12 billion.

The industrial sector contributed the most to 65.73 percent of the total export value in May 2022 which reached US$21.51 billion.

Meanwhile, in terms of export destination countries, China led the largest value or reached US$ 4.59 billion equivalent to 22.95 percent, followed by India at US$ 2.26 billion (11.27 percent), and the United States at US$ 2.05 billion (10.26 percent). Meanwhile, the value of Indonesia's exports to the ASEAN market share reached US$4.7 billion (20.34 percent) and the shipping value to Europe reached US$1.46 billion (7.28 percent).

“Export achievements from the manufacturing industry sector contributed to Indonesia's trade balance which continued its surplus trend in May 2022, with a value of US$ 2.89 billion. This surplus trend has been experienced since May 2020 or for 25 consecutive months", said Industry Minister, Agus Gumiwang Kartasasmita, in Jakarta, Tuesday, June 21.

The Minister of Industry explained that the performance of the trade balance, which again recorded a surplus value, needs to be grateful because it is the capital in supporting the ongoing national economic recovery efforts. "As one of the steps to maintain a trade balance surplus, the government continues to encourage the expansion of export markets to various countries", he said.

According to Agus, the industrial sectors in Indonesia are increasingly aggressive in expanding their export markets, such as to European countries, including the Netherlands, Germany and others. These countries are being affected by the supply of goods due to the Russo-Ukrainian war. "We are also actively encouraging small and medium industry (IKM) products to go international", he said.

Furthermore, the ability of the industrial sector to penetrate the export market shows that the products of the nation's children are recognized and sought after by foreign countries because they comply with applicable standards and quality. For example, Indonesia has succeeded in exporting cars to the Australian market, which proves that Indonesian vehicle products are competitive.

“The car has Euro 4 standard, which is a classification or requirement from Australia. This is something that we are very proud of, meaning that Indonesia is able to produce cars with emission standards set by countries such as Australia and Europe", he explained.

The Minister of Industry emphasized that the government is increasingly encouraging bilateral and multilateral cooperation that can expand market access for competitive national industrial products in the global arena. "Including forums in the series of Indonesia's G20 Presidency which can become media that can be optimized to achieve the goals of international cooperation", he added.